QQQM vs VIG: Which ETF Is Better in 2026?
A metric-by-metric comparison of Invesco NASDAQ 100 ETF (QQQM) and Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) — both US Large Cap Growth / Dividend Income funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 25, 2026. ~5 minute read.
The Verdict
QQQM (US Large Cap Growth) and VIG (Dividend Income) sit in different corners of the market, so this is less a head-to-head than a question of what role each would play. They can be complements rather than alternatives — the metrics below show how differently the two have actually behaved.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VIG scores higher: 76.9 (Grade B+) versus 70.8 for QQQM. That doesn't make QQQM a bad fund; it means VIG currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| QQQM | VIG | |
|---|---|---|
| Category | US Large Cap Growth | Dividend Income |
| Expense ratio | 0.15% | 0.04% |
| Fund size (AUM) | $101.3B | $129.5B |
| Dividend yield | 0.43% | 1.51% |
| 1-year return | +21.97% | +16.43% |
| 3-year return | +81.69% | +51.43% |
| Volatility | 18.82% | 10.01% |
| Max drawdown | -22.70% | -14.95% |
| Sharpe ratio | 0.90 | 1.14 |
| ETFValuer score | 70.8 | 76.9 |
| Grade | B | B+ |
| Overall rank | #103 | #30 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
VIG is the cheaper fund, charging 0.04% a year versus 0.15% for QQQM — a gap of 0.11 percentage points (about $11.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. Because these funds do different jobs, though, cost alone shouldn't decide it — a cheaper fund that gives you the wrong exposure is a false economy. See the ETF Fee Calculator for the exact dollar impact at your investment size and horizon.
What QQQM's Fees Cost You
QQQM charges an expense ratio of 0.15% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, QQQM returned +81.69% versus +51.43% for VIG — a gap of about 30.3 percentage points. On risk, VIG has held up better historically, with a shallower max drawdown (-14.95% vs. -22.70%). VIG currently has the better risk-adjusted return (Sharpe ratio of 1.14 vs. 0.90), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), QQQM and VIG show a strong correlation of 0.772 — clearly related, with room to diverge. There is some genuine differentiation here, but not enough to call these complementary holdings. Pairing them mostly concentrates risk rather than spreading it.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.772 | Strong — clearly related, with room to diverge |
| R-squared | 59.6% | 59.6% of QQQM's daily moves are explained by VIG's |
| Tracking error (annualised) | 13.28% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | QQQM +22.69% · VIG +14.75% | QQQM ahead by 7.94 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, QQQM finished as much as +27.2 points ahead of VIG at the best extreme and -3.9 points at the worst — a 31.1-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
QQQM and VIG hold 4 of the same companies among their top 10 positions. Those shared names make up 19.6% of QQQM and 15.8% of VIG. That's meaningful duplication. The funds aren't interchangeable, but a good share of your money would be riding on the same companies twice.
| Shared Holding | QQQM Weight | VIG Weight |
|---|---|---|
| Apple Inc. | 7.59% | 4.07% |
| Microsoft Corp. | 5.67% | 3.97% |
| Broadcom Inc. | 2.93% | 5.18% |
| Walmart Inc. | 3.36% | 2.60% |
Compares the top 10 reported holdings from each fund's most recent SEC N-PORT-P filing, so it understates total overlap — funds tracking similar indexes overlap far more deeply than the top 10 alone can show. Search any company across all tracked funds with the Stock Overlap tool.
Which One Should You Pick?
Lean QQQM if…
- You weight recent results heavily — it returned 81.7% over 3 years against 51.4%
Lean VIG if…
- You want the lower running cost — 0.04% vs 0.15%, about $11 a year less on a $10,000 position
- Current income matters to you — it yields 1.51% against 0.43%
- It has been the calmer ride (10.0% volatility vs 18.8%) with a shallower worst-case fall (-14.9% vs -22.7%)
- You care about return per unit of risk — its Sharpe ratio of 1.14 beats 0.90
These two are not really substitutes, so "both, in some proportion" is often the right answer rather than picking one. Model the blend with the Portfolio Blender.
Frequently Asked Questions
Is QQQM or VIG better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VIG scores higher: 76.9 (Grade B+) versus 70.8 for QQQM. That doesn't make QQQM a bad fund; it means VIG currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, QQQM or VIG?
VIG currently has the lower expense ratio (0.04% vs. 0.15%).
Can I hold both QQQM and VIG?
Yes, and it may be worth doing. QQQM and VIG correlate at only 0.77 over the past 3.0 years, so they behave differently enough that holding both is a genuine diversification decision rather than a redundant one. Size each to the role you want it to play.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.